Global investment firm KKR recently raised a $6.4 billion pan-Asian infrastructure fund and plans to invest a significant amount of it in India, with focus on roads and renewable energy.
Hardik Shah, Partner and Head of Infrastructure Investing in India for KKR, said India is a crucial part of KKR's global infrastructure investment strategy and the country is expected to receive a considerable increase in investments.
The Asia Pacific Infrastructure Investors II Fund, which closed on February 1, identified India, South Korea, Southeast Asia, Japan, Australia, and New Zealand as potential investment destinations.
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KKR's first Asia fund invested around 30 percent of its $3.9 billion corpus in the Indian infrastructure sector. According to Shah, the firm plans to follow a similar pattern since India continues to be their focus area. He also mentioned that the new fund will not focus on China, as KKR sees more potential in other markets.
Since 2019, KKR has invested over $3 billion in Indian infrastructure projects. "Around 25-30 percent of the fund was invested in India, and we expect to continue with similar deal flow, if not more," he added.
Shah highlighted the vital role played by India in both of KKR's funds. This role is supported by limited partners (LPs) who encourage more investments in the region.
KKR has set a goal to diversify its Indian portfolio by investing equally in roads, renewables, and other promising sectors. The firm has invested a total of $10 billion in India, with infrastructure remaining a key growth area.
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KKR is planning to double its asset-management business, which stands at approximately $553 billion worldwide. The company is focusing on infrastructure, climate, private wealth, and the Asia-Pacific region to achieve this goal. KKR manages $59 billion worth of assets in the infrastructure sector alone on a global scale.
Shah, while discussing the Indian market, highlighted the significant development in asset availability and investment viability in the last 15 years. He also said investors are now more discerning and cautious in their approach to investment opportunities.
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Private equity firms from around the world are keenly interested in investing in India, focusing on sectors such as healthcare, information technology, real estate, and infrastructure.
KKR is one such company that is investing heavily in India. Blackstone Inc., based in the US, is currently the biggest private equity investor in India, with $50 billion of investments in sectors such as healthcare, warehousing, and real estate.
(With inputs from Agencies)
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